<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-15701
NATURAL ALTERNATIVES INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 84-1007839
(State of other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
1185 LINDA VISTA DRIVE, SAN MARCOS, CALIFORNIA 92069
(Address of principal executive offices)
(Zip Code)
(760) 744-7340
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
5,887,375
(Number of shares of common stock of the registrant
outstanding as of October 30,1998)
1
<PAGE> 2
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30 June 30
1998 1998
----------- -----------
(unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 5,282,807 $ 4,714,212
Accounts receivable - less allowance for doubtful
accounts of $953,000 at September 30, 1998 and
$1,073,000 at June 30, 1998 7,687,744 12,558,731
Inventories 11,956,080 11,504,936
Notes receivable - current portion 398,199 399,307
Prepaid expenses 1,035,652 594,054
Deferred income taxes 745,000 854,000
Deposits 571,338 641,573
Other current assets 567,985 229,308
----------- -----------
Total Current Assets 28,244,805 31,496,121
----------- -----------
Property and equipment, net 11,640,666 10,531,865
----------- -----------
Other Assets:
Investments 54,224 61,971
Notes receivable, less current portion 177,179 160,273
Other noncurrent assets, net 740,499 737,049
----------- -----------
Total Other Assets 971,902 959,293
----------- -----------
TOTAL ASSETS $40,857,373 $42,987,279
=========== ===========
</TABLE>
2
<PAGE> 3
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEETS (continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30 June 30
1998 1998
------------ ------------
(unaudited)
<S> <C> <C>
Current Liabilities:
Accounts payable $ 7,508,166 $ 12,301,859
Current installments of long-term debt 47,465 46,501
Current installments of capital lease obligation 16,650 23,542
Income taxes payable 808,539 378,055
Accrued compensation and employee benefits 312,018 438,242
------------ ------------
Total Current Liabilities 8,692,838 13,188,199
Deferred income taxes 391,000 500,000
Long-term debt, less current installments 965,147 977,375
Long-term pension liability 662,564 662,564
------------ ------------
Total Liabilities 10,711,549 15,328,138
------------ ------------
Stockholders' Equity:
Preferred stock; $.01 par value; 500,000 shares
authorized; none issued or outstanding -- --
Common stock; $.01 par value; 8,000,000 shares
authorized; issued and outstanding 5,887,375 at
September 30, 1998 and 5,768,209 at June 30, 1998 58,874 57,682
Additional paid-in capital 10,730,289 9,756,822
Retained earnings 19,412,549 17,892,778
Accumulated other comprehensive income (55,888) (48,141)
------------ ------------
Total Stockholders' Equity 30,145,824 27,659,141
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 40,857,373 $ 42,987,279
============ ============
</TABLE>
See accompanying notes to unaudited financial statements.
3
<PAGE> 4
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
September 30
-------------------------------
1998 1997
------------ ------------
<S> <C> <C>
Net sales $ 16,985,802 $ 12,032,576
Cost of goods sold 12,331,693 8,871,222
------------ ------------
GROSS PROFIT 4,654,109 3,161,354
Selling, general &
administrative expenses 2,173,115 2,206,644
------------ ------------
INCOME FROM OPERATIONS 2,480,994 954,710
------------ ------------
Other income (expense):
Interest income 59,677 35,800
Interest expense (21,900) (30,090)
------------ ------------
37,777 5,710
------------ ------------
EARNINGS BEFORE INCOME TAXES 2,518,771 960,420
Income taxes 999,000 362,000
------------ ------------
NET EARNINGS $ 1,519,771 $ 598,420
============ ============
NET EARNINGS PER COMMON SHARE:
Basic $ 0.26 $ 0.11
============ ============
Diluted $ 0.25 $ 0.11
============ ============
</TABLE>
See accompanying notes to unaudited financial statements.
4
<PAGE> 5
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Common Stock Additional Other
------------------- Paid-In Retained Comprehensive
Shares Amount Capital Earnings Income Total
--------- ------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance, June 30, 1998 5,768,209 $57,682 $ 9,756,822 $17,892,778 $(48,141) $27,659,141
Issuance of common
stock upon exercise
of employee stock
options 119,166 1,192 574,951 -- -- 576,143
Income tax benefit
from stock options
exercised -- -- 398,516 -- -- 398,516
Net unrealized loss
on investments -- -- -- -- (7,747) (7,747)
Net earnings -- -- -- 1,519,771 -- 1,519,771
--------- ------- ----------- ----------- -------- -----------
Balance,
September 30, 1998 5,887,375 $58,874 $10,730,289 $19,412,549 $(55,888) $30,145,824
========= ======= =========== =========== ======== ===========
</TABLE>
See accompanying notes to unaudited financial statements.
5
<PAGE> 6
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months
Ended September 30
1998 1997
------------ -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 1,519,771 $ 598,420
Adjustments to reconcile net earnings to net
cash provided by (used in) operating activities:
Bad debt provision 65,000 90,000
Tax benefit on option exercise 398,516 --
Depreciation and amortization 475,275 346,234
Other -- (5,585)
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 4,805,987 1,237,199
Inventories (451,144) (1,380,232)
Prepaid expenses (441,598) (293,254)
Deposits 70,235 103,180
Tax refund receivable -- 797,000
Other assets -- (51,790)
(Decrease) increase in:
Accounts payable (4,978,702) (1,604,113)
Accrued compensation and employee benefits (126,224) (66,092)
Income taxes payable 430,824 --
----------- -----------
Net Cash Provided by (Used in) Operating Activities $1,767,600 ($ 229,033)
(continued)
</TABLE>
6
<PAGE> 7
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months
Ended September 30
1998 1997
------------- -------------
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($1,397,876) ($1,206,991)
Issuance of notes receivable (22,000) (4,625)
Repayment of notes receivable 5,031 16,518
Other assets (342,127) --
----------- -----------
Net Cash Used in Investing Activities (1,756,992) (1,195,098)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt and capital leases (18,156) (49,209)
Issuance of common stock 576,143 9,750
----------- -----------
Net Cash Provided by (Used in) Financing Activities 557,987 (39,459)
----------- -----------
Net Increase (Decrease) in Cash and Cash Equivalents 568,595 (1,463,590)
Cash and Cash Equivalents at Beginning of Period 4,714,212 3,469,739
----------- -----------
Cash and Cash Equivalents at End of Period $ 5,282,807 $ 2,006,149
=========== ===========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the quarter for:
Interest 21,654 25,302
Income Taxes 493,000 --
Disclosure of non-cash activities:
Fixed asset purchases in accounts payable 186,180 --
</TABLE>
See accompanying notes to unaudited financial statements.
7
<PAGE> 8
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The unaudited financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments, consisting of a normal recurring
nature considered necessary for a fair presentation, have been included. It is
suggested that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's annual report
on Form 10-K for the year ended June 30, 1998. The results of operations for the
periods ended September 30, 1998 and 1997 are not necessarily indicative of the
operating results for the full year.
Certain amounts in prior period financial statements have been reclassified to
conform to the current period financial statements.
NOTE 2 - INVENTORIES
Inventories are comprised of the following:
<TABLE>
<CAPTION>
September 30 June 30
1998 1998
----------- -----------
<S> <C> <C>
Raw materials $7,189,624 $7,049,954
Work in progress 4,449,735 3,971,315
Finished goods 316,721 483,667
----------- -----------
$11,956,080 $11,504,936
=========== ===========
</TABLE>
NOTE 3 - COMPREHENSIVE NET INCOME
The Company adopted Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income" (SFAS 130) in the first quarter of fiscal year
1999. SFAS 130 establishes new standards for the reporting and presentation of
comprehensive income and its components, however it has no impact on the
Company's total net income or stockholders' equity. Comprehensive income
includes a net unrealized loss of $7,747 and zero for the quarters ended
September 30, 1998 and 1997, respectively, and total comprehensive income was
$1,512,024 and $598,420 for the quarters ended September 30, 1998 and 1997,
respectively.
8
<PAGE> 9
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE 4 - NET EARNINGS PER SHARE
In 1998, the Company adopted Statement of Financial Accounting Standards No.
128, "Earnings Per Share" ("SFAS 128"). SFAS 128 requires the presentation of
basic earnings per share, computed using the weighted average number of shares
outstanding during the period, and diluted earning per share, computed using the
additional dilutive effect of all dilutive securities. The dilutive impact of
stock options and warrants account for the additional weighted average shares of
common stock outstanding for the Company's diluted earnings per share
computation. Basic and diluted earnings per share have been calculated as
follows:
<TABLE>
<CAPTION>
For the three months ended September 30
---------------------------------------
1998 1997
------------ -----------
<S> <C> <C>
NUMERATOR:
Net earnings - Numerator for basic
and diluted earnings per share -
income available to common
shareholders $ 1,519,771 $ 598,420
=========== =========
DENOMINATOR:
Denominator for basic
earnings per share - weighted
average shares 5,831,891 5,430,916
Effect of dilutive securities -
employee stock options 347,217 228,292
----------- ----------
Denominator for diluted earnings
per share - adjusted weighted
average shares and assumed
conversions 6,179,108 5,659,208
=========== ==========
Basic earnings per share $ 0.26 $ 0.11
Diluted earnings per share $ 0.25 $ 0.11
</TABLE>
9
<PAGE> 10
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE 5 - MAJOR CUSTOMERS
The Company had substantial sales to five separate customers during one or more
of the periods shown in the following table. The loss of any of these customers
could have an adverse impact on the Company's revenues and earnings in the
short-term. Sales by customer, representing 10% or more of the respective
period's total sales, are shown below by industry segment.
<TABLE>
<CAPTION>
Three Months Ended
September 30, 1998 September 30, 1997
------------------------ -----------------------
Industry Segment Sales by Customer %(a) Sales by Customer %(a)
---------------------- ---------------- ------- ----------------- -------
<S> <C> <C> <C> <C>
Multi-level Distribution:
Customer 1 $4,966,503 29% $4,763,331 40%
Customer 2 3,463,488 20% 2,023,937 17%
Customer 3 (b) 1,370,156 11%
Customer 4 (b) 1,253,346 10%
------------- ------- ------------ -------
8,429,991 49% 9,410,770 78%
Retail Distribution:
Customer 5 2,922,709 17% (b)
------------- ------- ------------ -------
$11,352,700 67% $9,410,770 78%
============= ======= ============ =======
</TABLE>
(a) Percent of total sales
(b) Sales for the period were less than 10% of total
sales.
(c) Total does not foot due to rounding.
10
<PAGE> 11
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Except for the historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties. The
Company's actual results could differ materially from those projected in the
forward-looking statements, including trends in financial performance (such as
growth in sales and earnings) and financial condition (such as working capital,
shareholders' equity, and total assets), the timely development and acceptance
of new nutritional supplement formulations, trends in the nutritional and
healthcare marketplace, anticipated costs and expenses associated with new
facilities and additional equipment, availability of financing on reasonable
terms, the maintenance and diversification of relationships with clients, the
impact of competitive products and pricing, the impact of government
regulations, and other risks including those detailed from time-to-time in the
Company's SEC reports, including the report on Form 10-K for the year ended
June 30, 1998.
Actual results may differ materially from those projected. These
forward-looking statements represent the company's judgment as of the date of
this release. The Company disclaims, however, any intent or obligation to
update these forward-looking statements.
RESULTS OF OPERATIONS
FIRST QUARTER OF FISCAL 1998 AND 1997
Net sales increased 41.2% or approximately $5.0 million to approximately $17.0
million for the quarter ended September 30, 1998, from approximately $12.0
million for the quarter ended September 30, 1997. The Company added several new
customers subsequent to the first quarter of fiscal 1998 and sales to these
customers was the primary reason for the increase. In addition, an increase in
sales to certain existing customers through their international distribution
channels was partially offset by a decrease in sales to other existing
customers.
Sales of products into international markets increased 23.9% to approximately
$4.5 million for the quarter ended September 30, 1998, from approximately $3.6
million for the quarter ended September 30, 1997. The increase is primarily the
result of existing customers expanding into Asian and European markets.
Income from operations increased 159.9% to approximately $2.5 million for the
quarter ended September 30, 1998, from approximately $1.0 million for the
quarter ended September 30, 1997. This was primarily due to a $1.5 million
increase in gross profit.
Gross profit margins were 27.4% for the quarter ended September 30, 1998,
compared to 26.3% for the quarter ended September 30, 1997. The increase in
margins was primarily due to purchasing cost efficiencies and efficiencies
gained through higher production volume.
Selling, general and administrative expenses decreased as a percentage of
revenues to 12.8% for the quarter ended September 30, 1998 from 18.3% for the
quarter ended September 30, 1997. The decrease is due to the increase in sales
noted above while selling, general and administrative expenses remained
consistent in absolute dollars at approximately $2.2 million.
Net earnings increased 154% or $.9 million to approximately $1.5 million for
the quarter ended September 30, 1998 from approximately $.6 for the quarter
ended September 30, 1997. The increase in net earnings was due primarily to
increased sales and improved gross profit margins.
Diluted earnings per share increased 127% for the quarter ended September 30,
1998 to $.25 from $.11 for the quarter ended September 30, 1997.
YEAR 2000 ISSUES
Most computer databases, as well as embedded microprocessors in computer systems
and industrial equipment, have been programmed to use a two-digit number to
represent the year. Computer programs that recognize a date using "00" as the
year 1900 rather than the year 2000 could result in errors or system failures.
Accordingly, all companies must analyze their systems and make the necessary
changes to ensure that automated processes will correctly distinguish between
years before and after the year 2000.
11
<PAGE> 12
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
During the quarter ended September 30, 1998, the Company purchased a new
financial and manufacturing software system which, in management's judgment,
will support the Company's continued growth and expansion. The Company expects
to implement its new computer systems by March 31, 1999; the Company has also
begun an assessment of the potential for Year 2000 problems with embedded
microprocessors in its production equipment. The Company estimates that it will
have incurred approximately $1 million in costs, of which approximately $100,000
will be charged directly to expense, by the end of its 1999 fiscal year to
replace its financial and manufacturing software systems and to remediate or
replace embedded microprocessors in its production equipment. This amount will
be funded from internally generated cash flows.
The Company has received some preliminary information concerning the Year 2000
readiness of some of its vendors of goods and services. It expects to engage in
discussions with its most significant vendors during the balance of 1998 and
1999 in an attempt to determine the extent to which the Company is vulnerable to
those vendors' possible failure to become Year 2000 ready. Furthermore, a
reasonably likely worse case scenario would be if one or more of the Company's
most significant vendors of goods and services, or the suppliers of the
Company's necessary energy, telecommunications and transportation needs,
experienced a material disruption in business and this caused the Company to
experience a material disruption in business. Such a disruption could have a
material adverse effect on the results of operations, liquidity and financial
condition of the Company. The Company is currently developing contingency plans
to address unavoided or unavoidable Year 2000 risks and expects to create such a
plan during the balance of 1998 and 1999.
If some or all of the Company's remediated or replaced internal computer systems
fail to correctly distinguish between years before and after the year 2000, or
if any software applications or embedded microprocessors critical to the
Company's operations are overlooked in the assessment or implementation phases,
there could be a material adverse effect on the Company's results of operations,
liquidity and financial condition of a magnitude which the Company has not yet
fully analyzed.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1998, the Company had working capital of approximately $19.7
million and borrowings available under revolving lines of credit of $3.0
million. As of September 30, 1998, there were no borrowings under these lines.
For the quarter ended September 30, 1998, net cash provided by operating
activities was approximately $1.8 million compared to net cash used in
operating activities of approximately $.2 million for the quarter ended
September 30, 1997. This increase of approximately $2.0 million was due
primarily to an increase in net earnings, a decrease in accounts receivable,
and an increase in income taxes payable partially offset by decreases in
accounts payable and the increase in inventory. Current maturities of
long-term debt and capital leases amounted to approximately $64,000 which the
Company expects to pay out of working capital.
The Company has revolving line of credit agreements permitting borrowings up to
$3.0 million, which are secured by the Company's receivables, inventory,
equipment, and vehicles and bear interest at the bank's prime rate. The present
loan agreement with the bank contains financial covenants concerning limitations
on maintenance of debt, certain financial ratio's and other matters, for all of
which the Company is in full compliance as of November 13, 1998. The lines of
credit expire on January 19, 1999; management expects such lines to be renewed
in the normal course of business.
12
<PAGE> 13
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART I - FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Capital expenditures for the quarter ended September 30, 1998 amounted to
approximately $1.6 million primarily in connection with the building
improvements in progress at the Company's new headquarters building and the
purchases of additional encapsulation and other production equipment to expand
the Company's output capacity. The Company anticipates capital expenditures of
approximately $12.0 million during fiscal 1999. These planned expenditures
relate primarily to building improvements for the Company's new headquarters
building, which is expected to be occupied in early 1999, and a warehouse and
blending facility, which was leased in August 1998. These expenditures are
expected to be paid from a combination of cash holdings, net cash provided by
operating activities in fiscal 1999, borrowings under the Company's lines of
credit with its bank, and anticipated long term debt or equity financing. If
these financing alternatives become unavailable, the Company may be required to
defer or restrict certain commercial activities or delay or eliminate
expenditures for certain of its potential products and/or markets.
New Accounting Pronouncements
In February 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits." This Statement standardizes
the disclosure requirements for pensions and other postretirement benefits,
requires additional information on changes in the benefit obligations and fair
values of plan assets and eliminates certain disclosures. Restatement of
disclosures for earlier periods is required. The Company will adopt this
Statement in its financial statements for the year ending June 30, 1999.
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
131, Disclosures about Segments of an Enterprise and Related Information"
("SFAS 131"). SFAS 131 establishes standards for the manner in which public
business enterprises report information about operating segments and also
establishes standards for related disclosures about products and services,
geographic areas, and major customers. These statements are effective for years
beginning after December 15, 1997. The Company does not expect that the
adoption of SFAS Nos. 131 and 132 will result in disclosures that will be
materially different from those previously included in its financial statements.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to risks relating to changes in interest rates and stock
market fluctuations.
At September 30, 1998, the Company maintains a portion of its cash and cash
equivalents in financial instruments with original maturities of three months or
less. These financial instruments, principally comprised of government backed
money market funds, are subject to interest rate risk and will decline in value
if interest rates increase. The Company also maintains a short-term investment
portfolio containing common stocks that are subject to market risk. The Company
has not used derivative financial instruments in its investment portfolio.
13
<PAGE> 14
NATURAL ALTERNATIVES INTERNATIONAL, INC.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is involved in various claims and legal actions arising in the
ordinary course of business. In the opinion of management, based in part on the
advice of counsel, the ultimate disposition of these matters will not have a
material adverse impact on the Company's consolidated financial position,
operations or cash flows.
ITEM 2. CHANGES IN SECURITIES
During the quarter ending September 30, 1998, 38,390, 61,610, and 19,166 common
shares were issued pursuant to employee stock option exercises under the 1992
Incentive Stock Option Plan, the 1992 Nonqualified Stock Option Plan and the
1994 Nonqualified Stock Option Plan, respectively. These shares were issued
pursuant to an effective registration statement.
ITEM 3. DEFAULTS BY THE COMPANY ON ITS SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: The following exhibits are filed herewith:
27.0. Financial Data Schedule
27.1 Restated - Financial Data Schedule for the Three Months Ended September
30, 1997.
(b) No reports on Form 8-K were filed during the quarter ended September 30,
1998.
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
MARK A. LE DOUX Date: November 13, 1998
- -----------------
Mark A. Le Doux
Chief Executive Officer
Assistant Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 5,282,807
<SECURITIES> 0
<RECEIVABLES> 7,687,744
<ALLOWANCES> 953,000
<INVENTORY> 11,956,080
<CURRENT-ASSETS> 28,353,805
<PP&E> 19,332,069
<DEPRECIATION> 7,691,403
<TOTAL-ASSETS> 40,966,373
<CURRENT-LIABILITIES> 8,692,838
<BONDS> 965,147
0
0
<COMMON> 58,874
<OTHER-SE> 30,086,950
<TOTAL-LIABILITY-AND-EQUITY> 40,966,373
<SALES> 16,985,802
<TOTAL-REVENUES> 16,985,802
<CGS> 12,331,693
<TOTAL-COSTS> 14,504,808
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 65,000
<INTEREST-EXPENSE> 21,900
<INCOME-PRETAX> 2,518,771
<INCOME-TAX> 999,000
<INCOME-CONTINUING> 1,519,771
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,519,771
<EPS-PRIMARY> 0.26<F1>
<EPS-DILUTED> 0.25
<FN>
<F1>"EPS-PRIMARY" DENOTES BASIC EPS.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,006,149
<SECURITIES> 0
<RECEIVABLES> 6,669,922
<ALLOWANCES> 1,007,000
<INVENTORY> 7,071,082
<CURRENT-ASSETS> 16,892,123
<PP&E> 15,312,236
<DEPRECIATION> 6,191,773
<TOTAL-ASSETS> 26,617,931
<CURRENT-LIABILITIES> 5,760,709
<BONDS> 1,047,565
0
0
<COMMON> 54,318
<OTHER-SE> 19,253,339
<TOTAL-LIABILITY-AND-EQUITY> 26,617,931
<SALES> 12,032,576
<TOTAL-REVENUES> 12,032,576
<CGS> 8,871,222
<TOTAL-COSTS> 11,077,866
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 90,000
<INTEREST-EXPENSE> 30,090
<INCOME-PRETAX> 960,420
<INCOME-TAX> 362,000
<INCOME-CONTINUING> 598,420
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 598,420
<EPS-PRIMARY> 0.11<F1>
<EPS-DILUTED> 0.11
<FN>
RESTATED PURSUANT TO REGULATION S-K, ITEM 601(c), TO CONFORM TO FASB NO. 128.
<F1>"EPS-PRIMARY" DENOTES BASIC EPS.
</FN>
</TABLE>
